Owning an electric vehicle in Australia saves you money on fuel and maintenance. Then the insurance renewal lands. On average, EV owners pay $2,545 per year for comprehensive cover — roughly $843 more than what petrol car owners pay. That gap works out to about 40% higher premiums, according to a January 2026 analysis of over 70,000 insurance quotes. The difference is real, and it hits your household budget every single year. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Not every EV costs the same to insure. A new Geely comes in at around $1,622 per year, while a new Tesla can hit $2,985. Where you live also shifts the price — Perth drivers typically pay 15–20% less than Sydney drivers for the same model. The brand you choose, the suburb you park in, and the way you shop all feed into the final number. Understanding how each factor works is the first step toward keeping more of your money in your pocket.
One term comes up again and again in EV insurance: write-off threshold. It’s the point at which an insurer decides it’s cheaper to scrap the car than repair it. For EVs, that threshold is lower than for petrol cars because the battery is structural and expensive — a moderate side-impact can trigger a total loss. Insurers price this risk into every premium.
What I tend to notice is that most people focus on the purchase price of the EV and forget the insurance cost until the first renewal arrives. That’s when the gap really shows up.
Premium comparisons by brand and city
The table below shows what you can expect to pay for comprehensive cover on popular EV models in Australia’s two most common comparison cities. Data is based on a 40-year-old driver in a metro postcode with a clean record, collected in January 2026.
→ Scroll right to see all columns
| Model | Sydney annual premium | Perth annual premium | Difference |
|---|---|---|---|
| Tesla Model 3 | $2,800 – $3,500 | $2,200 – $2,900 | ~19% less in Perth |
| BYD Atto 3 | $2,200 – $2,800 | $1,800 – $2,400 | ~15% less in Perth |
| Hyundai Ioniq 5 | $2,400 – $3,100 | $2,000 – $2,600 | ~17% less in Perth |
Perth’s lower population density and fewer extreme weather events drive the gap. Sydney’s hailstorms, higher theft rates, and expensive labour all push premiums up. The same driver, same car, different postcode — the difference can be hundreds of dollars per year.
Brand choice also matters. According to Choice’s analysis of over 16,000 EV quotes, Geely is the cheapest EV brand to insure at $1,622 for a new car, while Tesla is the most expensive at $2,985. The gap between cheapest and most expensive is over $1,300 per year — not a small amount when you’re choosing which EV to buy.
Beyond brand and location, the age of the vehicle matters less than you might expect. Choice found that a 4-year-old EV still costs about $2,441 to insure, barely below the $2,545 average for a new vehicle. Petrol cars, by contrast, drop more noticeably as they age. That’s because the battery replacement risk doesn’t age out the same way a combustion engine does.
Three mistakes that cost EV owners hundreds
Auto-renewing without shopping around
The most expensive mistake is doing nothing. Finder’s data shows the average EV quote over six months was $2,126, but Tesla’s own “Insure My Tesla” policy averages $1,644 — a difference of nearly $500. If you auto-renew with a legacy insurer, you could be paying that gap every year. What I’d do is set a calendar reminder 21 days before renewal and get at least three quotes. The process takes about 20 minutes and can save you more than $100 per hour of effort.
Leaving your excess at the default level
Most policies default to a $600 excess. Raising it to $1,200 can cut your premium by 15–20%. On a $2,500 premium, that’s $375–$500 saved per year. The trade-off is that you pay more out of pocket if you do have a claim. But if you’re a safe driver with a clean record, the odds are in your favour. The maths works best for drivers who haven’t made a claim in three years or more.
Ignoring the glass clause
EV windshields house LIDAR, cameras, and sensors. Replacing one can cost $3,000 or more. Many standard policies treat glass as a basic add-on, leaving you with a big bill if a stone hits the windscreen. Excess-free glass cover is worth checking — it’s included in Tesla’s InsureMyTesla policy and some specialist EV insurers. If your policy doesn’t have it, you’re effectively self-insuring a $3,000 risk.
If you’re unsure about the fine print in your policy, services like JustAnswer Business Law can help you understand contract terms before you commit.
How to lower your EV insurance premium in 2026
Specialised EV insurers vs legacy providers
Legacy insurers are not always the best fit for an EV. Specialist providers like National Cover (targeting BYD and MG owners with a price-beat guarantee) and ROLLiN’ offer “EV-first” policies that account for the specific risks of electric vehicles. Zurich’s InsureMyTesla, available through Tesla, is already proving that a dedicated policy can undercut the market by hundreds of dollars. The key is to compare at least three quotes — one from a specialist, one from a legacy insurer, and one from a brand-specific program if available.
Telematics and pay-as-you-drive discounts
Telematics apps sync with your car’s data to prove low mileage and safe driving. Drivers who cover under 12,000 km per year and maintain smooth driving habits can see 15–20% knocked off their premium. If you work from home or mostly drive short commutes, this is likely the single easiest way to cut costs. The insurer gets proof that you’re low-risk, and you get a lower rate. It’s a trade-off on privacy, but for many drivers the savings are worth it.
Bundle and multi-policy discounts
Bundling home and contents insurance with your EV policy can yield up to 20% off, according to Mash Magazine’s guide. Some insurers also offer a “green discount” on top of loyalty bonuses. If you have a second car, insuring both with the same provider can unlock an additional tier of savings. The trick is to ask explicitly — these discounts are not always advertised at the point of sale.
Annual review checklist
Set a date each year to run through these five actions:
- Compare quotes from at least three insurers (one specialist, one legacy, one brand-specific)
- Check if your current insurer has a new discount for low-mileage or telematics usage
- Confirm your excess is set at a level that balances risk and savings
- Verify that glass cover is excess-free for your specific EV model
- Review your no-claim bonus status and confirm it’s being applied correctly
If you’re comparing policies and want to understand the financial implications of different cover levels, JustAnswer Finance can help break down the numbers.
Frequently asked questions about EV insurance in Australia
Does my EV insurance cover the battery? ▾
Are charging cables covered under standard policies? ▾
Is towing different for an EV? ▾
Can someone else drive my insured EV? ▾
Does it cost more to insure a Tesla than a BYD? ▾
Will EV insurance get cheaper over time? ▾
Don’t let the insurance gap eat your EV savings
The gap between EV and petrol insurance is real, but it’s not fixed. The difference between the cheapest and most expensive policy for the same driver can exceed $1,000 per year. That’s money you can keep by choosing the right brand, adjusting your excess, using telematics, and shopping around at renewal. The market is shifting fast — Tesla’s own insurance program and new specialist entrants are already forcing prices down. The worst thing you can do is let last year’s policy renew without a second look.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Understanding Depreciation Protection in Your Car Insurance.
Sources and Further Reading
Electric Vehicles and Car Insurance in Australia: What You Need to Know — A broader overview of how EV insurance works, including coverage details and policy options.
Driving in Australia? These Car Insurance Mistakes Could Cost You Everything — Common pitfalls across all car insurance types, with practical ways to avoid them.
Choice (2026). The cost of insuring electric vehicles. 🔗
Mash Magazine Australia (2025). Electric car insurance Australia: costs, discounts and special rules. 🔗
Finder (2026). Electric car insurance in Australia. 🔗
EV Evolution (2026). The insurance gap: how to lower your EV premium in 2026. 🔗
Drive (2025). Cheaper to write off: the most popular electric cars insured in Australia. 🔗
